IFCI Limited filed a Company Petition against Patil Construction & Infrastructure Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a financial debt of Rs. 26,28,12,037/-. The corporate debtor had availed a corporate loan of Rs. 50 Crores, and despite modifications to the loan terms and execution of various security documents, the corporate debtor defaulted on repayment. The financial creditor issued recall notices and initiated SARFAESI proceedings. The corporate debtor proposed an OTS which was initially considered but later rejected by the financial creditor. The corporate debtor contended that the petition was barred by limitation and that a valid OTS arrangement existed.

IFCI Limited filed a Company Petition against Patil Construction & Infrastructure Ltd. under Section 7 of the Insolvency and Bankruptcy Code, 2016, seeking to initiate Corporate Insolvency Resolution Process (CIRP) due to a financial debt of Rs. 26,28,12,037/-. The corporate debtor had availed a corporate loan of Rs. 50 Crores, and despite modifications to the loan terms and execution of various security documents, the corporate debtor defaulted on repayment. The financial creditor issued recall notices and initiated SARFAESI proceedings. The corporate debtor proposed an OTS which was initially considered but later rejected by the financial creditor. The corporate debtor contended that the petition was barred by limitation and that a valid OTS arrangement existed.